Finance

The course project must include at least the following sections; you may want to include others if you deem them appropriate: Introduction Challenges and Problems (associated with your topic) Review of the Literature Critical Analysis of Challenges/Problems Recommended Solutions Implementation of Solutions Justification of Solutions Conclusion References The course project must be seven to ten pages, double-spaced, not counting the cover page and the references pages

Topic: Long-Term FinancingThread: Discuss the following question: Commercials suggesting that “buying gold” would be a wise decision are commonly aired. Explain the difference between “hedging” and “speculating” by explaining why someone who wishes to “hedge” against inflation might choose to purchase gold. Explain why someone who wishes to “speculate” might also choose to purchase gold. Relate the motivations of “hedging” and “speculating” to the topic of Christianity.1 Scripture verses from the bible that relate to this topic.Thread must be at least 250 words, demonstrate course-related knowledge, and be supported with at least 2 citations in current APA format. Acceptable sources include the course textbook, scholarly journal articles, and the Bible.Name of book: Block, S., Hirt, G., & Danielsen, B. (2019). Foundations of financial management (17th ed.). Boston, MA: McGraw-Hill Custom.

Written Assignment 3 Answer all of the following questions/problems and submit them to your mentor in a Word document. You should use a financial calculator and Excel to solve the problems. Remember: You must export your table(s) from Excel to Word before submitting your work. Consult the Course Calendar for due dates. Note: You will be able to use a financial calculator for your midterm exam, but Excel will not be available. Discuss the differences between efficiency and effectiveness. Why is it important for small business owners to understand the difference between profit and profitability? What financial ratio is used to determine profitability? Sam quit a $30,000-a-year job with a local heating and air conditioning firm to go into business for himself. After his first year in business, his accountant showed him an income statement that indicated Sam’s firm had a profit of $40,000. During this year Sam had drawn a salary of $20,000. What was Sam’s accounting profit, his entrepreneurial profit, and his opportunity cost? Explain the difference between accounting and entrepreneurial profit. Discuss the differences between operating and financial leverage. You are going to open a business making custom cabinets. You can sell each cabinet for $80. It takes a cabinet-maker approximately 45 minutes to make one cabinet. Each cabinet-maker works an eight-hour day, earning $18 per hour. Each cabinet will use $25 in raw materials. You usually produce cabinets 20 days a month and can employ two cabinet-makers. You estimate that your fixed costs are $5,000 per month. What is your contribution margin? How many cabinets must you make each month to break even? What is your total monthly revenue if you want to earn a $2,000 profit? Distinguish between gross working capital and net working capital. Discuss the role that marketable securities play in current asset management. Explain the problems that a firm may encounter when it does not provide for accrued liabilities. Jane James owns an appliance store. She normally receives $50,000 worth of appliances per month. She does not like to owe people money and always pays her bills on the day she receives the invoice. Someone told her that if she delayed payment, she could actually increase her profit because the money would be earning interest in her account. She went through her bills and found that she actually had an additional ten days, on average to pay her invoices. She also found that she was earning 5 percent interest on the money she had in her money market savings account. If she delayed payment by ten days, how much additional interest would she earn for the year? Explain how this problem represents a disbursement float. Larry’s Lawn Equipment Company gives terms of 2/10, n/30. Larry has annual credit sales of $500,000 and average accounts receivable of $60,000. What is Larry’s accounts receivable turnover? What is Larry’s average daily collection? What is the relationship between the terms that Larry is giving and his average daily collection? If Larry has accounts receivable of $100,000 rather than $60,000: What is Larry’s accounts receivable turnover? What is Larry’s average collection period? What should Larry do, if anything?

·       Analyze your chosen company’s current business and financial conditions and create a brief introduction to your company that includes the following. o   The mission of the company o   A descriptions of the company’s current business operation, competitors, financial condition o   General information that explains why the company interesting to you as an analyst.• Explain how you think this company might provide value if you were to acquire their stock. • Assess how the company appears to approach issues of ethical behavior and social responsibility and how this might affect its value.

U.S. oil benchmark crashes below $0 a barrel to mark historic plunge A pumpjack operates above an oil well at night in the Bakken Formation in North Dakota.Bloomberg News/Landov A futures market is a central financial exchange where people can trade standardized futures contracts. A futures exchange provides physical or electronic trading venues, which can be organized as non-profit member-owned organizations or for-profit organizations. Futures exchanges can also be integrated under other types of exchanges, such as stock markets, options markets and bond markets. Futures contracts are sometimes used by corporations and investors as a hedging strategy. Hedging refers to a range of investment strategies that are meant to decrease the risk experienced by investors and corporations. Questions; The futures market is referred to as an auction market, whereby producers and suppliers of commodities endeavour to avoid market volatility; in other words, producers and suppliers negotiate contracts with an investor who agrees to take on probable risk and reward, based on the expected volatility of the market. 1. Critically discuss the theoretical concept of futures contracts as a risk management tool, used by any would be investor to decrease future risk exposure or market volatility. (15 marks) 2. Review and discuss the collapse of the Futures Oil Market, which fell into the negative realm in May 2020. (15 marks) What were the main reasons for this fall into the negative realm? Critically discuss. (20 marks) Total 35 marks 3. After May 2020, what are the prospects of futures contracts as a significant risk management tool for firms? Discuss critically. (30 marks) Students are requires to reference all your material, inclusive of books, journals, articles, web articles and relevant web sites, via footnotes and relevant citations must be in the APA format. The practice of plagiarism is prohibited in this course and attracts a penalty. See Course Page under Quicklinks at https://courses.open.uwi.edu/ on the policy on plagiarism. Any breaches of this policy will be severely dealt with. Word limit is 2500- 3000 words. Total marked out of 80 to be converted into 45 marks. Dimension Excellent Good Satisfactory Poor Introduction (5 marks) The introduction and objectives are clearly stated. Background and context are clearly articulated and linked to objectives effectively. (5 marks) The introduction and objectives are clear. Background and context are partially described and mostly linked to objectives. (4 marks) The introduction and objectives are clear but the background and context are not well described nor clearly linked to objectives. (3 marks) The introduction is vague. Background and context are vague or absolutely lacking and there are no clear links to objectives. (0-2 marks) Profiles (10 marks) Profiles meet all requirements. (9-10 marks) Profiles meet most requirements. (7-8 marks) Profiles meet some requirements. (5-6 marks) Profiles meet few or no requirements. (0-4 marks) Analysis (30 marks) Analysis is highly relevant to the assignment requirements and presented clearly and logically. Very strong link made between theory and practice. (27-30 marks) Analysis is relevant to the assignment requirements but is not always presented clearly and / or logically. Strong link made between theory and practice. (21-24 marks) Analysis is somewhat relevant to the assignment requirements. At times, the analysis is not clearly or logically presented. Fair link made between theory and practice. (15- 18 marks) Analysis is not relevant to the assignment requirements. Analysis is vague and illogical. The link between theory and practice is unclear and illogical or has major errors. (0-12 marks) Evaluation (20 marks) Evaluation is highly relevant to the assignment requirements and presented clearly and logically. Very strong link made between theory and practice. (18-20 marks) Evaluation is relevant to the assignment requirements but is not always presented clearly and / or logically. Strong link made between theory and practice. (14-16 marks) Evaluation is somewhat relevant to the assignment requirements. At times, the analysis is not clearly or logically presented. Fair link made between theory and practice. (10-12 marks) Evaluation is not relevant to the assignment requirements. Analysis is vague and illogical. The link between theory and practice is unclear and illogical or has major errors. (0-8 marks) Conclusion (5 marks) Conclusion is clearly stated and connections to the arguments and positions are clear and relevant. The underlying logic is explicit. (5 marks) Conclusion is clearly stated but connections to arguments and positions are not always clear and relevant – some aspects may not be connected or minor errors in the underlying logic are present. (4 marks) Conclusion is fairly well stated and connections to arguments and positions are somewhat unclear / irrelevant (3 marks). Conclusion is very poorly stated and the connections to the arguments and positions are incorrect, unclear, irrelevant or presented without explanation. Underlying logic has major errors. (0-2 marks) Writing (5 marks) The Project is coherently organized and easy to follow. There are no spellings or grammatical errors and technical terms are clearly defined. (5 marks) The Project is generally well organized and mostly easy to follow. There are only a few minor spelling and/or grammatical errors, and technical terms are not clearly defined. (4 marks) The Project is fairly well organized and somewhat easy to follow. There are a few minor spelling and / or grammatical errors and technical terms are not defined. (3 mark) The Project is poorly organized and difficult to read – does not flow logically from one part to another. It is not easy to follow. There are several spelling and/or grammatical errors; technical terms are not defined or are poorly defined. (0-2 marks) Referencing (5 marks) Four or more references were used/ cited. References were: 1. Appropriate for the context of the Project. 2. Were very current where applicable using references produced during the last 5 years 3. Used effectively in the Project. 4. Written using the latest APA style format (5 marks) Three references were used/ cited. References were: 1. Mostly appropriate for the context of the Project. 2. We’re not always current, using references produced during the last 6 years 3. Used mostly effectively in the Project. 4. Written using the latest APA style format for the most part (4 marks) Two references were used/ cited References were: 1. Somewhat appropriate for the context of the Project 2. Were for the most part, outdated, using references produced during the last 7 years 3. Used somewhat effectively in the Project. 4. Written using the latest APA style format was inconsistent throughout (3 marks) Only one reference or no references were used/ cited. References, if used were: 1. Not appropriate for the context of Project. 2. Were for the most part, outdated, using references produced during the last 8 years or more 3. Ineffectively used in the Project. 4. Not written using the Latest APA style. (0-2 marks)

Part I This assignment is the first of a three-part process. Parts II and III will be completed in Units VII and VIII respectively. Using your favorite search engine, select a local government budget that has not filed a petition for bankruptcy. Evaluate the past three years of the selected government’s distribution of income. Develop an analysis including the following: Evaluate trends of revenue sources and balances (funds, surpluses, deficits) and how they impact the government’s budget. Evaluate ethical practices of financial policy on taxes, fees, and charges. Assess internal/external opportunities and challenges of revenue sources. Your report should consist of no less than two pages, and all sources utilized should be cited and referenced using APA style. Please ensure that you include a cover page and reference page. Remember that the cover page and reference page are not included in the page expectation.

Topic: Why do the arithmetic average return and the geometric average return differ? Explain.

Propose the factors that impact market segmentation in global markets.  Defend the main reasons causing U.S. firms to cross list aboard. Appraise the 3 levels of commitment for ADRs traded in the United States.  Construct how MNEs can diversify operations.  Examine the re-measurement and translation process.

Part 1 – 1000 words (due 13th December) A) Describe how a company can get its finance (please focus on debt and equity). B) Select a company that is trading in the New York Stock Exchange and analyze the way it’s getting its finance. Please focus on debt, equity and profit. C) How the company can boost its profits? Please propose certain alternatives. Part 2 – 1000 words (due 10th January) A) Please explain the following concepts: a. Net Sales b. Cost of Goods sold c. Gross Profit d. Operating Expenses e. Net Earnings B) Please select a company that is trading in the New York Stock Exchange and analyze how the company is performing taking into consideration its income statement. Please decide if you would invest or not in the company. Part 3 – 1000 words (due 17th of January) A) Please explain all the ways for a company to increase its liquidity. B) Please explain the following concepts: a. Profitability b. Earnings per share c. Return on assets d. Return on equity e. Earnings per share C) Please select a company that is trading in the New York Stock Exchange and analyze its main indicators in order to establish if it is a good or bad investment. Formalities: – Cover, Table of Contents, References and Appendix are excluded of the total wordcount. – Font: Arial 12,5 pts. – Text alignment: Justified. – The in-text References and the Bibliography have to be in Harvard’s citation style

Here are your instructions for the stock portfolio assignment:   Select 10 stocks of companies you are interested in investing in. You should select companies in different industries; you want a diversified portfolio to help manage your risk exposure. You can invest up to $1000 in each company(but not more) starting with the closing price as of the day you set up the account (overall, your portfolio cost should be no more than $10000).   For example, if the price of a share is $34.21 (the day you decide to “buy” it), you can buy 1000/34.21 = 29 shares whole shares (round down since you are not allowed to own fractional shares in this assignment, even though you could in real life).   You can set up a watch account on finance sites like www.finance.yahoo.com, or cnbc.com, or cnn money, etc. A watch account will maintain the value of the account and your profit or loss on each stock if you enter the number of shares and the price paid per share. You should set up the display field options to include fields like your purchase price, dollar gain or loss, % gain or loss, and if the company pays a dividend that would also be useful.   As an easy alternative, I’ve created a stockwatch spreadsheet (attached) that you can use by entering the price you paid, the date you bought, current price, and any dividends it pays into a color coded Excel spreadsheet. Just enter your data in the green cells ONLY. Just don’t touch the other colored cells or you will overwrite the formulas that make it work. The green cost cells you only enter once. When you update the value of your portfolio each week, you’ll be updating the current price cells. PROTIP: Enter the price you paid first, then adjust the # of shares you bought up and down until your cost drops below $1000 so that way you know you didn’t overspend per stock.  This also illustrates that you can build a successful portfolio without really expensive stocks like Amazon whose shares are around $1900, or Alphabet (parent of Google) whose shares are over $1400.    So, this week, using my easy spreadsheet, or an online portfolio tracker, figure out what you want to buy (within the above guidelines) and record your data, so you’ll have something to report next week with the updated prices.    This upcoming week (starting next week) your first upload will be here answering the following questions based on stocks you buy this week: How are you doing overall? Gain? Loss? (provide both the dollar gain or loss and percentage gain or loss) 10 points What was your best performing stock? 10 points What was your worst performing stock? 10 points Why did you select the stocks you did? 20 points Also upload your spreadsheet showing your data or a screenshot from the web tracker you use to manage your portfolio.